ThesisPDF Available

ACCEPTANCE OF RIDE SHARING SERVICE BY STRUCTURAL EQUATION MODELING

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Abstract and Figures

Application based ride sharing service is reducing traffic congestion and providing employment opportunity to the people. Easy to access nature and due to comfortability this service is becoming popular in Bangladesh. The service providers and policymakers are trying to expand this ride sharing service for different people travelling to the same destination. In this study overall acceptance of ride sharing service is measured with sharing attitude and perceived risk of user’s. For this study structured questions were formed based on reported attitude and perceived risk of the users from literature and stake holders. Using online survey total 350 data was collected from car sharing users of Bangladesh. Our study shows that, the data collected from ride sharing users are consistent and suitable for factor analysis. Data is incorporated with structural equation model to test the hypothesis of service acceptance of ride sharing service. The structural equation model is justified with the help of SPSS Amos 26. Our result shows that, safety & security of ride sharing service and user’s judgement those were latent variables in the developed model have positive influence with each other. Under user’s judgement latent variable, driver’s attitude(y7), driver’s skill(y8), traffic congestion(y9) and environmental impact(y10) observed variables has higher influence on ride sharing service. One the other hand, under safety & security latent variable, personal info. (y11) and account info. (y12) observed variables has higher influence on sharing attitude. Our results also signify deeper understanding of the effect of user’s sharing attitude and perceived risk on their acceptance of ride sharing service. These findings help the policy makers to understand the key attributes of sharing attitude of the user’s. These results can also be utilized by the service provider and policy maker to improve the service quality to attract new user’s and the existing user’s. Driver’s skill, driver’s attitude toward user’s during traffic congestion and use of environment friendly fuel can help the policy maker to make this service more acceptable. And also privacy of both user’s info. and user’s account info. can accelerate this service. Our study also found ride sharing service more time and cost affordable for all type of users than public transport. By making ride sharing application more user-friendly and availability of ride sharing vehicles during peak hour this service can be widely accepted service for all.
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ACCEPTANCE OF RIDE SHARING SERVICE BY
STRUCTURAL EQUATION MODELING
MD. MOHAIMENUL ISLAM SOURAV
TAMANNA TABASSUM
MD MAHEDI HASAN OPU
A THESIS SUBMITTED
FOR THE DEGREE OF BACHELOR OF SCIENCE
DEPARTMENT OF CIVIL ENGINEERING
MILITARY INSTITUTE OF SCIENCE AND TECHNOLOGY
2021
SUPERVISOR’S APPROVAL
The thesis titled, ACCEPTANCE OF RIDE SHARING SERVICE BY STRUCTURAL
EQUATION MODELING prepared by Md. Mohaimenul Islam Sourav, Roll No: 201711024,
Tamanna Tabassum, Roll No: 201711046 and Md Mahedi Hasan Opu, Roll No: 201611079,
Session: 2016-17 has been approved for submission in partial fulfilment of the required for the
Degree of Bachelor of Science in Civil Engineering.
Lt Col Mohammed Russedul Islam, PhD, Engrs
Associate Professor
Department of Civil Engineering
Military Institute of Science and Technology
DECLARATION
We hereby declare that, this thesis is our original work and it has been written by us in it’s
entirely. We have duly acknowledged all the sources of information which have been used in
the thesis. The thesis (fully or partially) has not been submitted for any degree or diploma in
any university or institute previously.
Md. Mohaimenul Islam Sourav
Student ID: 201711024
Department of Civil Engineering
Military Institute of Science and Technology
Tamanna Tabassum
Student ID: 201711046
Department of Civil Engineering
Military Institute of Science and Technology
Md Mahedi Hasan Opu
Student ID: 201611079
Department of Civil Engineering
Military Institute of Science and Technology
DEDICATION
This thesis work is dedicated to our beloved parents.
ACKNOWLEDGEMENT
First of all, we are indebted to the almighty Allah for overwhelming all the obstacles and
predicament that faced during the whole research work and for bringing this thesis into its
authenticity.
We would like to thank our supervisor, Associate Professor Lt Col Mohammed Russedul Islam,
PhD, Engrs, for his guidance, advice and encouragement during the course of this thesis.
Without his time and knowledge, this research would not have been possible.
We would also like to express our profound gratitude to Major H. M. Imran Kays, Engrs,
Assistant Professor of Military Institute of Science and Technology for giving unparalleled
support to our experiment.
Special thanks to those respondents who answered our research questions.
Abstract
i
ABSTRACT
Application based ride sharing service is reducing traffic congestion and providing
employment opportunity to the people. Easy to access nature and due to comfortability this
service is becoming popular in Bangladesh. The service providers and policymakers are trying
to expand this ride sharing service for different people travelling to the same destination. In
this study overall acceptance of ride sharing service is measured with sharing attitude and
perceived risk of user’s. For this study structured questions were formed based on reported
attitude and perceived risk of the users from literature and stake holders. Using online survey
total 350 data was collected from car sharing users of Bangladesh. Our study shows that, the
data collected from ride sharing users are consistent and suitable for factor analysis. Data is
incorporated with structural equation model to test the hypothesis of service acceptance of ride
sharing service. The structural equation model is justified with the help of SPSS Amos 26. Our
result shows that, safety & security of ride sharing service and user’s judgement those were
latent variables in the developed model have positive influence with each other. Under user’s
judgement latent variable, driver’s attitude(y7), driver’s skill(y8), traffic congestion(y9) and
environmental impact(y10) observed variables has higher influence on ride sharing service.
One the other hand, under safety & security latent variable, personal info. (y11) and account
info. (y12) observed variables has higher influence on sharing attitude. Our results also signify
deeper understanding of the effect of user’s sharing attitude and perceived risk on their
acceptance of ride sharing service. These findings help the policy makers to understand the key
attributes of sharing attitude of the user’s. These results can also be utilized by the service
provider and policy maker to improve the service quality to attract new user’s and the existing
user’s. Driver’s skill, driver’s attitude toward user’s during traffic congestion and use of
environment friendly fuel can help the policy maker to make this service more acceptable. And
Abstract
ii
also privacy of both user’s info. and user’s account info. can accelerate this service. Our study
also found ride sharing service more time and cost affordable for all type of users than public
transport. By making ride sharing application more user-friendly and availability of ride
sharing vehicles during peak hour this service can be widely accepted service for all.
Key Words: Sharing attitude, Perceived risk, Service Acceptance, Data suitability and
consistency, Structural Equation Modeling
Abstract
iii
Table of Contents
iii
TABLE OF CONTENTS
Page No.
ABSTRACT i
TABLE OF CONTENTS iii
LIST OF ABRIVIATION vi
LIST OF FIGURES ix
LIST OF TABLES xii
CHAPTER ONE: INTRODUCTION
1.1 Background 01
1.2 Concept of Ride Sharing Service 04
1.3 Objectives 07
1.4 Scope of The Work 07
1.5 Organization of Thesis 08
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 10
2.2 Concept of Ride Sharing 10
2.3 Previous Study on Ride Sharing Service 11
Table of Contents
iv
2.4 Previous Study on SEM 16
CHAPTER THREE: METHODOLOGY
3.1 Introduction 18
3.2 Steps of Work 18
3.3 Study Methodology 19
3.3.1 Selection of service acceptance variables 20
3.3.2 Questionnaire structure 23
3.3.3 Sample size 23
3.4 SEM for Analysis 27
3.5 Conceptual Framework of Structural Equation Model 29
3.6 Empirical Model 30
3.7 Structural Equation Model 33
CHAPTER FOUR: DATA DESCRIPTION AND PRELIMINARY STATICS
4.1 Introduction 36
4.2 Survey Context 36
4.3 Sample Characteristics 36
Table of Contents
v
CHAPTER FIVE: RESULT AND DISCUSSION
5.1 Introduction 42
5.2 Factor Analysis Results 42
5.2.1 Exploratory factor analysis 42
5.2.2 Confirmatory factor analysis 43
5.2.2.1 Validity concerns 45
5.3 Hypothesis Testing Results 46
5.4 Empirical Model Results 50
5.5 Discussion 60
CHAPTER SIX: CONCLUSION AND RECOMMENDATIONS
6.1 Introduction 64
6.2 Conclusions 64
6.3 Recommendations for Future Research 65
REFERENCE 67
List of Symbols
vi
LIST OF ABBREVIATIONS
GDP Gross domestic products
WHO World Health Organization
PM Particulate matter
GPS Global positioning system
SA Service acceptance
CO2 Carbon-di-Oxide
RS Ride sharing
SEM Structural Equation Modeling
SAV Shared and automated vehicles
DRS Direct rail services
CC Charges collect
NL Nested logit
KMO Kaiser-Meyer-Olkin
CFI Comparative fit index
NFI Normed fit index
TLI Tucker-Lewis index
RMSEA Root mean squared error of approximation
List of Symbols
vii
SRMSR Standardized root mean squared residual
AIC Akaike’s information criterion
UE User’s experience
AP Acceptance
WL Willingness
ST Safety
AT Accessibility
SM Security of money
BRTC Bangladesh road transport authority
CFA Confirmatory factor analysis
EFA Explanatory factor analysis
df Degree of freedom
AVE Average variance extracted
CR Composite reliability
S.E Standard error
p Conventional level of significance
CNG Compressed natural gas
List of Symbols
viii
List of Figures
ix
LIST OF FIGURES
Page No.
Figure 1.1 Traffic jam in Dhaka city 02
Figure 1.2 Air pollution in Dhaka city 02
Figure 1.3 Public transport condition in Dhaka city 03
Figure 1.4 Women facing difficulties in public transport 04
Figure 1.5 Ride sharing service in Bangladesh 05
Figure 3.1 Flow diagram of research work 19
Figure 3.2 Conceptual framework of structural model 29
Figure 3.3 Confirmatory factor analysis 32
Figure 3.4 Structural model 35
Figure 4.1 Gender difference of respondents 37
Figure 4.2 Age difference of respondents 37
Figure 4.3 Occupational status of respondents 38
Figure 4.4 Mostly visited place 39
Figure 4.5 Living place of respondents 39
Figure 4.6 Daily travel distance of respondents 40
Figure 4.7 Trip purposes 40
Figure 4.8 Reasons of ride sharing 41
List of Figures
x
Figure 5.1 Reliability & validity relations 46
Figure 5.2 Hypothesis result of structural model 47
Figure 5.3 Comfortability of user’s during sharing his/her rides 52
Figure 5.4 Time affordability during peak hour 53
Figure 5.5 Cost affordability while sharing the rides with others than 53
travelling alone
Figure 5.6 Familiarity with ride sharing application 54
Figure 5.7 Availability of ride sharing vehicles during peak hour 54
Figure 5.8 Driver’s skill both in free flow & congested condition 55
Figure 5.9 Traffic congestion during peak hour 55
Figure 5.10 Environmental impact due to use of fuel 56
Figure 5.11 Support ride sharing services as it takes credit card/ bKash/ 56
rocket account information
Figure 5.12 Allowing personal car for “Ride sharing” service while it 57
remains Idle
Figure 5.13 Overall safety of “ride Sharing” service 57
Figure 5.14 Women safety during sharing her rides at night 58
Figure 5.15 Possibilities of accident while using “Ride sharing” service 58
Figure 5.16 Possibilities of being deceived due to fare payment. 59
Figure 5.17 Possibilities of conflict while paying the fare among the user’s 60
List of Figures
xi
List of Tables
xii
LIST OF TABLES
Page No.
Table 3.1 List of service acceptance variables 21
Table 3.2 Preliminary statistics of research data 24
Table 4.1 Income distribution of respondents 38
Table 5.1 KMO and Bartlett’s test 43
Table 5.2 Cronbach’s alpha test 43
Table 5.3 Model fit result of CFA model 44
Table 5.4 Validity and reliability test result 44
Table 5.5 Confirmatory factor analysis result 45
Table 5.6 Estimated parameters value of diff. SA variables 48
Table 5.7 Goodness of fit measures of models 51
List of Tables
xiii
Introduction
1
CHAPTER ONE
INTRODUCTION
1.1 Background
With the development of civilization Bangladesh has become a developing country with per
head income of 1274 US Dollar, Human resource Index of 72 and Economic Crisis Index is
25.2. Transportation system is the prime element that has most contribution in our economy.
Transportation system playing major role in our economy. Due to improvement of
transportation system it is assumed to obtain GDP up to 0.660 by 2025(Sourav & Islam, 2021).
The transportation system of Bangladesh is improving rapidly but still has many flaws which
hampers the development of the country. It needs Improvement with enough safety standards
to meet the demand of people. The severe traffic congestion in Dhaka city in Fig. 1.1 is one of
the major problems in our country but still no organization is taking the responsibility for
solving the problem. A huge population is making the existing public transport inefficient and
creating problems like sound pollution, air pollution etc. And making the roads crowd and
unsafe (Rahman & Nahrin, 2012).
Environmental issue is one of the major issues in our country. Most of the vehicles operating
in our country don’t use environmental friendly fuel. As a result, our environment is being
polluted daily in Fig. 1.2 (Agatz et al. 2012; Naik & Mohanta, 2020). According to WHO report
Dhaka reaches a yearly average of 90 µg/m3 of PM2.5, which corresponds to a 168-unhealthy
air quality index (Wang et al. 2020; Jeon, Lee & Jeong 2020).
Introduction
2
Fig. 1.1: Traffic jam in Dhaka city
Fig. 1.2: Air pollution in Dhaka city
Road accident is a major problem in our country. Major causes of road accident in our country
in Fig. 1.3 is speeding, overtaking and overloading of passengers, Lack of awareness and
Introduction
3
reckless driving habit is the main cause of accident. About 5000 people were killed by road
accident in last year (Ahmed, Ahmed & Hainin, 2014).
Fig. 1.3: Public transport condition in Dhaka city
Although the government has already taken some steps, still death counts in highways are
increasing rapidly in an alarming rate. Over speeding, overloaded vehicles, vehicles moving in
the same route are causing these accidents. Driver’s lack of awareness and reckless driving are
also major reasons. The bus drivers in our country are not qualified enough and are not trained
enough to drive in highways. For economic reasons most of the people in Dhaka city are
walking dependent and a large number of people use bicycles and rickshaws to travel but still
there is always a conflict between motorized and non-motorized transports. For these reasons
the current transportation system is not reaching to fulfil the demand of public to have a safe
road and transport system. Safety for women in public transport is also an alarming issue. In
our country there aren’t adequate arrangement for women. A few busses are there but the
proportion is quite low considering the demand. Women often get harassed by men or staff.
Introduction
4
Sometimes women can’t bargain with the contactor about the actual fare. At night travelling in
public transport system is like a deadly situation for women. Frequently, women passengers
face some unwanted situation (Rahman, 2010). In Fig. 1.4 difficulties are faced by women
getting into public transport is shown.
Fig. 1.4: Women facing difficulties in public transport
As a large number of people are poor in Bangladesh, they can't afford individual rides with
high expenses. So, public transports mainly the buses are the only transport system they can
ride with low cost. But with the increasing population the buses are getting overloaded which
is not safe for the passengers. And also for the poor planning and management bus services are
not satisfactory to meet public demands.
1.2 Concept of Ride Sharing Service
In Fig. 1.5 application based ride sharing can be very useful to reduce traffic congestion and
parking demands for the developing countries like Bangladesh. Ride sharing is mainly
dependent on the willingness of people to share a ride when their destination is same. Ride
Introduction
5
sharing is developing rapidly with the development of mobile internet technology and other
innovative technologies like GPS (global positioning system) (Wang et al. 2019; Agatz et al.
2011). In our country, during the peak hours' people keep searching for public transports which
makes the road crowd and also it is not always possible to find a comfortable ride for passengers
in those overloaded public transports. In these situations, ride sharing can be a very useful and
effective way to have a comfortable ride. Public transports are not always comfortable so many
aged people can't take
any ride but in ridesharing they can easily travel as they are enough comfortable.
Fig. 1.5: Ride sharing service in Bangladesh
As people share a ride, they don’t need to bear the full travel cost so ride sharing is also cost
effective. Nowadays paratransit is a common term which is also known as community transport
for transportation services. It provides ride without fixed routes or time. The most common
paratransit in Bangladesh is tempo which is highly popular in this time. Although in urban
areas public busses are seen everywhere, it often fails to meet the public demand and also it
has a defined route. In this case paratransit can play very important role in ride sharing as it
doesn’t follow any defined route (Rahman et al. 2016). Moreover, as many people will share a
Introduction
6
ride the number of vehicles will be reduced in the roads so there will be very less chance to
conflict and the number of accidents will be under control.
The majority of women in Bangladesh are now self-dependent and they are doing different
kind of jobs for their living. They also need to travel to go to their job places regularly. As the
most low-cost transport system is now the public buses, they don’t have any other choices
rather than to travel in those over crowd buses. Travelling in those overly crowded buses are
not comfortable and often not safe for them but still they don’t have any other options because
they must reach to their destination. They need to face many problems during the rides and it
is difficult for them to compete with the men and getting into the buses in the rush hours. So,
they often choose walking to reach their destination which is difficult and requires more time.
Ride sharing can be very useful for them because it is comparatively safer and more
comfortable. They can easily make a group and share a ride with less expenses and safely reach
to their destination without getting late. Service Acceptance is a very important term for ride
sharing. Sometimes a transport system may have a lot of advantages but still may not satisfy
public demand and satisfaction. SA mainly refers to user’s judgment, expectations and
satisfaction. So, a good concept about SA can give a good prediction about the willingness of
people to adopt rideshare in future (Rahman et al. 2016).
Ride sharing is beneficial not only by meeting public demands and sharing travel expenses, by
reducing traffic jams, air pollution, energy consumption ride sharing can also bring social
benefits. It brings environmental benefits by reducing CO2 and energy consumption. It makes
a proper planning for the empty transport seats which improves the travel efficiency and vehicle
capacity (Beria et al. 2017; Wang et al. 2019). In a ride sharing app, when the passengers select
a destination and the driver agrees to that proposal, the app automatically shows the travel fee
to the passenger so there is less chance of conflict between the rider and the driver (Agatz et
al. 2011; Amirkiaee & Evangepoulos, 2018).
Introduction
7
The relationship of perceived risk and the willingness of people is very important. As maximum
ride sharing is mainly internet based, many personal information is need to be shared thought
internet which is not always considered safe for all the passengers. These risks affect their
willingness of future ride sharing decisions (Wang et al. 2019).
Ride sharing behaviour is dependent on the people’s thought about the ride sharing service they
are being provided, their satisfaction level about the ride, their comfort level while sharing the
ride with strangers etc. and these things influence their willingness to use ride sharing in future
(Moody, Middleton & Zhao, 2019).
1.3 Objectives
1. To identify overall service acceptance of ride sharing service considering user's attitude
and perceived risk.
2. To justify the relationship among the variables using Structural Equation Modeling
1.4 Scope of The Study
The model prepared through this research can be used by the operators and decision makers as
a tool to evaluate SA of Ride Sharing service based on user’s attitude toward sharing ride
considering perceived risk. Most of the ride sharing is only personal. People travel all alone.
Hence, to attract user’s travelling at the same destination and maintain safety standards the
policy maker can use this tool to monitor, evaluate and implement improvements in SA.
In this study total twenty observed variables is used to understand the sharing attitude of the
user’s. Also, through the influence of SA variable on overall perceived SA, the transit agencies
policy makers can identify those critical or important variables that contribute more towards
evaluation of SA. Hence, by prioritizing those variables and improving or developing those,
Introduction
8
may increase the overall SA drastically. In this way, quick results can be achieved in attracting
potential users of the service.
1.5 Organization of Thesis
The works perform in this thesis are divided into different segments and are presented into six
chapters.
Chapter 1 - A detailed introduction is given about the thesis topic in chapter one with the
objectives, research methodology and the scope of the study.
Chapter 2 - It reviews the relevant researches available that use Structural Equation Modeling
technique as well as other methodology for analysing the Service Acceptance of Ride Sharing
system. A description of SEM technique is also provided at this chapter.
Chapter 3 - Presents a description of the conceptual modelling framework for the causal
relationship to be tested and the hypotheses that are being tested in this research.
Chapter 4 - Presents a brief description of socio-economic as well as Ride Sharing service
acceptance data collected on both users and non-users of Bangladesh and describe how the data
is processed for model estimation. It also provides preliminary statistical parameters of the
collected dataset.
Chapter 5 - Presents the details of different empirical models fitness along with the
significance of model parameters. A detail assessment on model parameter values and its causal
relationship with Ride Sharing passenger vessel SA are also presented in this chapter.
Chapter 6 - Summarizes the main findings of the thesis with some recommendations for future
research.
Introduction
9
Literature Review
10
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
Review of literature is very important before entering into the process to attain the specific
objectives of the thesis work. It helps to understand and get the overall idea about the topic to
work on. So, it is necessary to conduct a review of literature on the subject matter of thesis.
This chapter presents an extensive review of literatures that deal with different measures or
techniques and variables used to assess the overall perceived service acceptance of ride sharing
system. With a brief description of ride sharing system of Bangladesh, this chapter summarizes
the findings from previous studies on ride sharing service quality analysis. Structural Equation
Modeling technique which has been widely used in transportation industry for SA
measurement. This shows the potential application of SEM in perceived SA assessment of ride
sharing system.
2.2 Concept of Ride Sharing
Fitness less public transport has made the life of public miserable. Overcrowd during peak hour
and waiting at the same station for long time is wasting passengers valuable time. Using of un-
environmental friendly fuel also cause the degradation of environment. Competition of picking
up passengers also cause frequent accident. The development of algorithms for optimally
matching drivers and riders in real-time is at the heart of the ride-sharing concept (Agatz et al.
2012). Ride sharing is a facility and time oriented transportation service using secure and
advantageous technology in real-time ride sharing where two groups of people as driver and
passenger exists (Agatz et al., 2011). This service mostly involves feasible use of vehicles with
a different mode of transportation, usually car and bike. Now, this service only allowing single
Literature Review
11
user’s to travel any destination. There are no particular vehicle operating organization for ride
sharing service. Most of the vehicles are personal vehicles. Drivers only allow those user’s to
share their rides whose destination is same as the vehicles owner. There is no free willing
service provider who will go anywhere the user is willing to go. The main research objective
is that, by satisfying user’s judgement & safety of ride sharing service accepting someone for
sharing rides going at the same destination. Therefore, transportation industries can be changed
by this network companies using updated technology to address the present demand of new
generation like reduced travel time, travel cost and traffic congestion (Hair et al. 2006; Hooper
et al. 2008). This research says that, this service has high level of acceptance among the user’s
travelling at the same destination. This research has also acceptance in reducing traffic
congestion, saving time and safety during travelling specially for women.
2.3 Previous Study on Ride Sharing Service
In the world, a large number of studies are carried on Ride Sharing for assessing SA or
investigating passenger satisfaction. Findings from few such studies are presented below. There
is no significant relationship between rider-to-rider discriminatory attitudes and whether
a transportation network companies user has ever used a ridesharing service (Moody,
Middleton & Zhao 2019) and Hawapi et al. (2017) have found at the neighbourhood level while
larger values of average degree centrality of the road network are associated with
better Uber accessibility, higher values of average closeness centrality are associated with
worse Uber accessibility.
Hong et al. (2017) aimed to investigate how a firm’s corporate social responsibility practices
affect customers’ attitudes, their self-brand connection, and, in turn, brand preference with
ridesharing services. By applying a non-negative matrix factorization method, (Golob, 2003;
Literature Review
12
Hwang & Griftiths, 2017) found that, ride-sharing principally serves as an approach for
commuting. Agatz et al. (2011) considers the problem of matching drivers and riders in this
dynamic setting. Flexible carpooling Casual Carpooling Raspberry Express Slugging. Hume
(2010) presents both a classification of existing ridesharing systems and some specific
challenges toward a mass fiction of ridesharing that pose opportunities for new research.
Hawlitschek, Teubner & Gimpel (2016) article forms a basis for future survey-based research
on user behavior in the “Sharing Economy.”
Based on the insight that Information and Communication Technologies can
reduce transaction costs and that local geographical knowledge is spread across distant users,
we have focused on a community-based toolkit as promising technology to reduce transaction
costs (Hansen et al. 2010). Based on the insight that Information and Communication
Technologies can reduce transaction costs and that local geographical knowledge is spread
across distant users, we have focused on a community-based toolkit as promising technology
to reduce transaction costs (Hansen et al. 2010).
Hong (2017) extends the theory of perceived risk in technology acceptance by incorporating
social concerns which have received limited attention in previous literature on the sharing
economy. Hong et al.( 2017) proposed that a modeling and simulation framework is capable
of helping achieve this goal and evaluating the traffic state with ride-sharing behaviors. Jin et
al. (2018 ) presents a systematic review of the existing literature concerning the impact of ride
sourcing on the efficiency, equity, and sustainability of urban development. Drawing on the
extended valence framework, Lee et al. (2018); Gurumurthy & Kockelman, 2020 propose and
test a research model to systematically examine the effects of perceived risks, perceived
benefits, and trust in the platform on users’ intention to participate in the sharing economy.
In the carpooling case in which pick-up waiting time is less than 1 min, traffic condition in
82.5% of the congested road segments can be alleviated, and travel speed improvement
Literature Review
13
resulting from real-time carpooling is considerable (Li, Liu & Zhang 2018). By taking
advantage of the different entry times of Uber into different urban areas, Kline (2011);
Furuhata (2013) School of Business are able to compare the difference in traffic
congestion after and before Uber entry for the urban areas where Uber operates to the same
difference for those urban areas without Uber service.
In order to compare the impact of ride sharing using autonomous and traditional taxis,
Lokhandwala & Cai (2018) modeled the change of shifts for the traditional taxis to have shift
schedules that are similar to the existing New York City taxi operation schedules. All personal
vehicle sharing and traditional car sharing experts interviewed in the study and agreed that
personal vehicle sharing holds the potential to notably expand the shared-use vehicle market
(Shaheen, Mallery & Kingsley 2012).
Dong et al. (2018); Stoiber et al. (2019) investigated the influence of
potential instruments designed to encourage the adoption of pooled utilization of autonomous
vehicles and discourage private ownership of autonomous cars. Wang et al. (2018) showed
that environmental awareness is positively associated with consumers’ intention to use ride-
sharing services. Teubner & Flath (2015) explored the novel idea of multichip ride sharing and
illustrates how information systems can leverage its potential. Kiatkawsin & Han (2017)
investigated the environmental benefits of ride-sharing through its CO2 emission mitigation
potential. Zhang et al. (2015) developed a simulation model to evaluate the potential impact of
Shared Autonomous Vehicles on urban parking demand.
Coook et al. (2018) suggests that jobs offering complete flexibility will likely still contain
a gender wage gap, much like the traditional workforce. Middleton & Zhao (2019) showed that
the attitudinal finding is that discriminatory attitudes toward fellow passengers of
differing class and race in the shared ride are positively correlated with respondents that are
Literature Review
14
male or are women with children. Sarriera et al. (2017) focused on the social and behavioral
considerations of shared rides, which have not been explored as thoroughly as time and cost
trade-offs in transportation. The exploratory factor analysis revealed six factors that affected
the satisfaction of tourists using bicycle sharing ease of access to cycles, perceived
risk, environmental awareness, psychological benefit, managerial effectiveness, and perceived
rule adherence (Zhou et al. 2020 ).
Fagnant & Kockelman (2014) focuses on SAVs’ travel and environmental implications, and
uses different assumptions to model a much smaller share of such trips, while modeling
directional distribution effects by time of day. Deakin, Frick & Shively (2010); Lee, Lee &
Yoo (2019) builds on gaps in past public AV-perception studies by emphasizing
ethics, privacy, the nuances of dynamic ride-sharing . Respondents, who traveled by car as
driver on the reference trip, are relatively more likely to choose the option shared autonomous
vehicles without dynamic ride-sharing, while selecting the option SAV with DRS is more
likely if the reference trip was undertaken by car as passenger (Chang, Lee & Lee, 2009;
Krueger, Rashidi & Rose 2016). Uber is one of the popular ride-sharing service, but future
research can include the study of all major ride sharing services (Lee, Rahafrooz & Lee, 2017).
Lyft and Uber drivers are younger than both taxi drivers and the county as a whole; over half
of ride hail drivers in Los Angeles are under 40 years old compared to about one-third of taxi
drivers (Li et al. 2016; Cook et al. 2018).
Marsh, Hua & Wen (2004) show that, University of California Berkeley employees are more
likely to try and regularly use a dynamic ridesharing service than UC graduate students, or
commuters to downtown Berkeley. Martin & Shaheen (2011) offered perspective on
how public transit and non-motorized modes may change with car sharing. Liu, Wu & Li
(2018) focused on a pervasive trend among Millennial consumers: the experience of benign
Literature Review
15
envy toward others’ positive travel experience sharing on social networking sites. Lind et al.
(2015) suggested that, the value-belief-norm theory is successful in explaining travel mode
choice in a Norwegian urban public when controlling for situational factors. Klöckner, Nayum
& Mehmetoglu (2013) analyzed how ownership of an electric car potentially impacts car use
patterns.
The expectancy theory focuses on performance and effort, “right actions lead to the desired
outcomes” and “the more effort, the higher likelihood of achieving the desired outcomes.”
Results of this study support the merger of the two theories (MacCallum, 1999). It may be
necessary to study a wide range of behaviors which cannot all be observed or the behavior of
interest has already occurred, or it may be unaffordable to observe the actual behaviour of large
number of tourists (Juvan & Dolnicar 2016). Heo & Muralidharan (2017) were not found the
moderating role of perceived consumer effectiveness but it did not show that consumer
innovativeness amplifies the positive effect of hedonic value of collaborative consumption on
attitude. Stach (2011) Examined the young consumer’s consumption and attitude to sustainable
consumption.
Despite the limited generalizability of the sample, Heo & Muralidharan (2017) suggested that,
young Millennials, as the most environmentally educated cohort, are more likely to be
influenced by environmental knowledge when purchasing green products. Steiger (1990)
seemed to be a discrepancy between factors that affect attitudes and behavioral intentions:
Perceived sustainability is an important factor in the formation of positive attitudes
towards collaborative consumption, but economic benefits are a stronger motivator for
intentions to participate in CC. Charles & Kline (2006); Godelnik (2017) founded that, 50%
of millennials agree that the sharing economy improves the American economy as a whole and
Literature Review
16
explored the engagement of millennial students with the sharing economy via a project called
Buy Nothing New, Share Everything Month. Tanaka (1987); Chan & Shaheen (2012)
categorized North American ridesharing into five key phases: World War II car-sharing clubs;
major responses to 1970s energy crises; early organized ridesharing schemes; reliable
ridesharing systems; and technology-enabled ride matching. The confirmatory factor
analysis showed that the Geotraveler Tendency Scale provides a valid and reliable
measurement tool to determine if travelers to an area align with ecotourism’s definition (Boley,
Nickerson & Bosak 2010). Bentler & Chou (1987); Yin et al. (2018) investigated the motives
for participation in situated ridesharing and includes economic benefits, time
benefits, transportation.
2.4 Previous Study on SEM
A full structural equation model is composed of three set of equations (or three sub models):
(1) a measurement model for the endogenous (dependent) variables (2) a measurement model
for exogenous (independent) variables and (3) a structural model. However, a full SEM is
rarely applied in practice. An SEM measurement model is used to specify a set of latent
(unobserved) variables as linear functions of other observed endogenous or exogenous
variables. In a full SEM, structural model is used to capture the causal influences among the
latent exogenous and latent endogenous variables. If no measurement model is used, structural
model capture directly the causal influences of the observed exogenous variables on the
observed endogenous variables and the causal influences among observed endogenous
variables. SEM, that have measurement model only for observed endogenous variables,
structural model involves latent endogenous variables rather than observed endogenous
variables. Similarly, for SEM with measurement model only for observed exogenous variables,
Literature Review
17
structural model involves latent exogenous variables rather than observed exogenous variables.
An important step before model estimation is to ensure that each components of the model is
identified. Structural equation model is basically a set of simultaneous linear equations. To
obtain correct parameter estimates, the set of equations must be identified regardless of the
sample size. Model identification problem can be resolved by imposing some constraint on
model parameters. This restriction can be imposed by fixing some parameters value to a pre-
defined value or fixing some error terms to zero. If the reliability of on the measurement of a
observed variable is known, error term for that variable can be defined as (1- reliability) times
variance of the variable.
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18
CHAPTER THREE
METHODOLOGY
3.1 Introduction
In this chapter overall methodology is focused on SA of ride sharing service doing study of
ride sharing attitude and perceived risk using Structural Equation Modeling. First section
describes the brief steps of work. Subsequent section describes the specification of the SEM
with the hypothesis testing of the models.
3.2 Steps of Work
Questionnaire was set according to research objectives. Questionnaire was designed in the
google form for easily accessible for the user’s. Both personal info. and research related info.
was asked to the respondents. All the responses were combined in an excel sheet. Responses
data were then sorted 1 to 5 rating scale to make understand the analysis tool. At the same time
when the data were being collected, the method for hypothesis is being selected. Then the tools
(Amos 26) for hypothesis testing was selected. Data consistency and suitability for factor
analysis was determined. At the final stage several models were tested to justified the SA by
trial and error. Considering the model fit whether the relations are accepted or not is also
justified. And finally the best model is selected for SA justification. The overall flow diagram
is given in the Fig. 3.1.
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19
Fig. 3.1: Flow diagram of research work
3.3 Study Methodology
A three step Methodology is adopted for this research work. The first step aims at selection of
SA variables based on research objectives. The SA variables included in the survey with some
basic parameters.
Second steps give the data collection and data sorting for different data testing and also for
hypothesis testing.
Third step gives the structural equation models to utilize this study. Collected data is filtered
for anomalies and a series of models are developed to understand thoroughly the relationships
between overall SA of Ride Sharing service of different independent and dependent variables.
For each empirical model, the process of model development follows the approach of trial and
Methodology
20
error in terms of accommodating various exogenous, endogenous and latent variables as well
as overall goodness of fit values of the models.
3.3.1 Selection of SA variables
The models require input variables to be provided into the system which are the attributes or
features of SA affecting passenger’s satisfaction. The selection of concise sets of attributes is
a challenging task. Many researchers have used large number of attributes to model a specific
problem but that creates the problem of inputting too many variables into the system. Another
challenge is to identify and combine both commuter satisfaction and transit performance
measures. The use of a generic list of attributes for determining SA in any field of service but
the idea did not gain much appreciation from fellow researchers. Because many are in
agreement that various situation calls for separate analysis of each problem in hand and
attributes selected accordingly. The Transportation Research Board, developed different transit
service aspects for service quality measure, summarized in different reports. In these reports
five categories of service acceptance measures are defined: availability in terms of passengers‟
ease of access and use of ride service, travel time, safety and security in terms of real and
perceived chances of being involved in an accident or being the victim of a crime while using
transit, and maintenance and construction. For each service acceptance aspect some examples
of objective measures are suggested.
So, several studies and manual developed by research suggest categories of variables which
constitute the standard criteria for measuring SA. Most of the published studies found are from
developed countries. These findings are likely to be different from the context of developing
countries like Bangladesh.
Lack of indigenous literature has led to our derivation of SA variable for road passenger vessel
in Bangladesh from literature research, various focused group discussion, extensive
Methodology
21
brainstorming and expert opinion of academicians, practitioners. Then using this preliminary
designed questionnaire was conducted to get the feedback of respondents and check the
soundness of the survey design. Considering passenger’s opinion, the questionnaire is modified
accordingly before actual data collection.
After detailed investigation, a set of 20 SA variables were selected to carry out this research.
Table 3.1 shows the selected SA variables for this research.
Table 3.1: List of service acceptance variables
Variable
Category
Variable name
Variable
Annotation
Description
Endogenous
observed
variables
Comfortability
y1
Comfortability while allowing unknown
people for Ride Sharing.
Time
Affordability
y2
Time saving in compare to Public
transport.
Cost
Affordability
y3
Cost reduction due to sharing the Ride.
Familiarity with
application
y4
Familiarity with Ride Sharing apps (Uber,
Pathao, OH BHAI etc)
Convenience
y5
How easy Ride Sharing service.
Availability
y6
Availability of Ride sharing transport
during both on-period & off-period.
Driver’s
Attitude
y7
Driver’s attitude during sharing ride with
one or more passengers.
Driver’s skill
y8
Driver’s driving skills according to BRTC
requirement.
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22
Traffic
Congestion
y9
Ride Sharing vehicles congestion during
loading & un-loading of passengers.
Environmental
Impact
y10
Environmental effect due to Ride Sharing
in compare to use public transport.
Personal Info.
y11
User’s pickup point, drop-down point,
basic info.(Name, Address etc)
Account info.
y12
Ride Sharing taking user’s bKash, Rocket
etc. account info. While paying fare.
Waiting charge
y13
Waiting charge during traffic congestion.
Passenger’s
safety
y14
Safety from any un-wanted situation.
Women’s safety
y15
Women’s safety while travelling with men
or other women during night.
Accident
y16
Vehicle to vehicle clash or any major
threat.
Deception
y17
Deception while paying fare manually.
Conflict risk
y18
Conflict while paying fare by all the
shared person.
Permission for
Ride Sharing
Y19
User’s permission for sharing his/her ride
after proper judgement and safety.
Allowing
personal car for
RS
Y20
Allow personal car for Ride Sharing
during office hour or off-period.
Latent
Variables
User’s
Judgement
η1
User’s view if his/her all criteria are
fulfilled or not.
Safety &
Security
η2
Safety & Security of RS than any other
public transport.
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3.3.2 Questionnaire structure
The questionnaire for the survey is structured into four sections. The first section aims to
acquire demographic characteristics (sex, age, and occupation) and travel characteristics
(purpose for travelling, reason behind selecting Ride Sharing service for traveling, choice of
Ride Sharing vessels if other modes are made cheaper) of the passenger. The second section
was oriented to the collection of passenger opinion about sharing attitude and perceived risk of
the selected service variables. To obtain passenger opinions about 20 service acceptance
variables, respondents were asked about these variables given with answer choice in a semantic
scale (Too much, Much, Roughly, Few & Very Few). This semantic scale was also ordered in
a cardinal scale ranging from 01 to 05. The respondents marked the checkboxes from their
travelling experience about these variables in ride sharing services. The third section aims at
collecting and evaluating of overall SA perceived by passenger, after being reflected to the
service variables during questionnaire survey. The benchmark point about the overall SA was
collected on a semantic scale codified to a 05 points cardinal scale. In the fourth section
passengers were asked to select the overall SA rating of a marine passenger vessel in the
previous (third) section.
3.3.3 Sample size
SEM technique is generally suitable for large sample size. But, it is difficult to define strictly
how large because several factors affecting sample size requirements are model complexity
and other factors like type of estimation algorithm, the normality of the data, missing patterns
etc. (Kline 2011). SEM provides flexibility of determining complex alignment, use of various
types of data and comparisons across alternative models which, however, makes it difficult to
develop generalized guidelines regarding sample size requirements (MacCallum et al. 1999).
Despite this, various rules of thumb have been advanced. As rules of thumb the ratio of sample
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size to the number of free parameters can be as high as 20 to 100 (Tanaka 1987) or as low as
05 to 01(Bentler and Chou 1987). Lower sample sizes can be used for models with no latent
variables or where all loadings are fixed (usually to one) or in simpler models with strong
correlations. But it is always best to use Monte Carlo data simulation techniques to evaluate
sample size requirements for common applied SEM models. study uses a total of 350 samples
with 20 service variables. Preliminary statistics of research data is given below Table 3.2.
Table 3.2: Preliminary statistics of research data
Item
No.
Variables
Types
Variables
Standard
Deviation
Numerical
rating scale
Qualitative
Scale
1
Endogenous
Latent
Variable
Driver’s
attitude
0.041
1 to 5
Too much
friendly to
very much
rude
2
Driver’s skill
0.046
1 to 5
Highly
qualified to
very less
qualified
3
Traffic
Congestion
0.053
1 to 5
Too much
to very few
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4
Environmental
Impact
0.057
1 to 5
Too much
to very few
5
Permission
0.059
1 to 5
Always to
not at all
6
Allowing
personal car
0.042
1 to 3
Always to
Not at all
7
Comfortability
0.049
1 to 5
Too much
to very few
8
Time
Affordability
0.048
1 to 5
Too much
to very few
9
Convenience
0.052
1 to 5
Too much
to very few
10
Cost
Affordability
0.049
1 to 5
Too much
to very few
11
Accident
0.048
1 to 5
Very Few
to Too
much
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12
Deception
0.058
1 to 5
Very Few
to Too
much
13
Conflict Risk
0.055
1 to 5
Very Few
to Too
much
14
Women’s
safety
0.060
1 to 5
Too much
to very few
15
Familiarity
with
Application
0.061
1 to 5
Too much
to very few
16
Availability
0.044
1 to 4
Always to
very few
17
Personal
information
0.066
1 to 5
Too much
to very few
18
Account
Information
0.067
1 to 5
Too much
to very few
19
Waiting
charge
0.059
1 to 5
Too much
to very few
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27
3.4 SEM for Analysis
Structural Equation Modeling was adopt to present the result of hypothesis. Structural Equation
Modeling allows the researcher to quantitatively test the relationship among the different
variables by sample data (Moody, Middleton & Zhao, 2019; Wang et al.2019). Estimation of
SEM which is an iterative process which produce best fit solution of the collected data. The
iteration is done based on covariance analysis with fundamental assumptions. By estimating
parameters in the model SEM minimizes the difference between the sample covariance matrix
and the model implied covariance matrix (Rahman et al., 2016). SEM have three types of
equation or sub-models: 1. Measurement Model for the dependent or endogenous variables, 2.
Measurement model for the independent or exogenous variables 3. Structural Model (Hooper
et al. 2008). SEM is applied partially in practice. SEM measurement model is used to justify a
set of latent variables as linear functions of other observed dependent and Independent
variables. In a full SEM, structural model is used to capture the causal influences among the
latent exogenous and latent endogenous variables. If there is no measurement model, structural
model capture directly the causal influences of the observed exogenous variables on the
observed endogenous variables and the causal influences among observed endogenous
variables (Golob 2003). Structural Equation Model that have measurement model only for
observed dependent variables, structural model involves latent dependent variables rather than
observed dependent variables. Similarly, for SEM with measurement model only for observed
exogenous variables, structural model involves latent exogenous variables rather than observed
exogenous variables (Golob 2003).
In this study IBM SPSS Statistics 22 and IBM Amos 26 software is used. IBM SPSS Statistics
22 software was used to short the data collected from questionnaire. IBM SPSS Statistics 22
was also used for factor analysis. Kaiser-Meyer-Olkin and Bartlett's test was done for factor
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28
analysis. KMO and Bartlett’s test gives the result of degree of un-dimensionality and data
sufficiency of the observed data.
SPSS Amos 26 was used for hypothesis testing. To cope with the complexity of the SEM
structure, more than a single measure is required to define the goodness of fit of the developed
models. Comparative Fit Index, Tucker-Lewis index, Root Mean Squared Error of
Approximation, Standardized Root Mean Squared Residual, Normed Fit Index, Akaike’s
Information Criterion and x2/df are used to define the goodness of the model fit.
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29
3.5 Conceptual Framework of Structural Equation Model:
In this paper conceptual framework has been stablished in the Fig. 3.1 to justify the SA of Ride
Sharing service.
Fig. 3.2: Conceptual framework of structural equation model
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30
H1: Influence of User’s Judgement and Safety & Security latent variables with each other will
be justified by this path co-efficient.
H2: Influence of User’s Judgement to Allowing personal car for Ride Sharing is justified by
this path co-efficient.
H3: Influence of User’s Judgement on giving permission someone for Ride Sharing is justified
by this path co-efficient.
H4: Influence of Safety & Security on giving Permission someone for Ride Sharing is justified
by this path co-efficient.
H5: Influence of Safety & Security variables on Allowing personal car for Ride Sharing is
justified by this path co-efficient.
H6: Influence of Permission someone for Ride Sharing on Allowing personal car is justified
by this path co-efficient.
H7: Influence of Permission someone for Ride Sharing on Acceptance of Ride Sharing service
is justified by this path co-efficient.
H8: Influence of Allowing personal car on Acceptance of Ride Sharing service is justified by
this path co-efficient.
3.6 Empirical Model
We estimated an Exploration factor analysis and Confirmation factor analysis to justify
reliability measure of Ride Sharing attitude and risk from the sample data by dividing the total
variables into six latent variables. Exploratory factor analysis is a statistical technique that is
used to reduce data to a smaller set of summary variables and to explore the underlying
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31
theoretical structure of the phenomena. It is used to identify the structure of the relationship
between the variable and the respondent. It is also used for reliability and validity test of sample
data. In EFA analysis we have done KMO and Bartlett’s test shows the degree of un-
dimensionality and sufficiency of sample data. We have also done Cronbach’s alpha test for
further reliability test. Again, in CFA we have done Validity and Reliability test to test the data
accuracy. Confirmation Factor Analysis is one kind of SEM model in which relationship
among latent variables are modeled as correlations rather than structural relationship. CFA
model helps us to identify which relationship has significant and which have no significant. By
this result of CFA, we build up SEM by trial and error. We compared the model fit to
established standards like chi-square test which is not statistically different from zero. CFI, NFI
& TLI value close to 1.00 is considered as a good fit of model. And RMSEA<0.08 and SRMR<
0.08 is consider as good fit of model (Rahman et al. 2016).
After KMO and Bartlett’s test we have shown the convergent validity of six latent variables of
Ride Sharing attitude which gives that, if the all latent variables have standardized factor
loading> 0.70 and R2> 0.50. After the convergent validity divergent validity test was done.
Divergent validity was measured by estimating CFA model which correlates passenger’s
attitude with social parametric scale to show whether it is related or not and distingeted
constructs or not (Moody, Middleton & Zhao 2019). The CFA model is given in Fig. 3.2.
Methodology
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Fig. 3.3: Confirmatory factor analysis
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33
3.7 Structural Equation Model:
There are various methods for estimating the SE models, such as maximum likelihood method,
generalized least squares method, weighted least squares method, and so on. The choice of the
appropriate method generally depends on different assumptions about the probability
distribution, the scale properties of the parame parameters, the complexity of the SEM, and the
sample size (Golob 2003). After determining validity and reliability of the structure of the ride
sharing attitude of the respondents, we incorporate the latent variables into structural models
to justify the relations with the SA of ride sharing service. Considering parameters, we
estimated structural model to find the result of ride sharing attitude and service acceptance
considering perceived risk.
Our structural model consists of two latent variables. We have combined all the six latent
variables in CFA model into two latent variables: User’s Judgement(η1) and Safety &
Security(η2). User’s Judgement is calibrated by ten endogenous observed variables and Safety
& Security is calibrated by eight endogenous observed variables. There are no exogenous
variables in this model. The structure of Model is shown in Fig. 3.3. From the structure the
following equation can be written.
Z = λ0 + λY + 𝛿 ………………… .(3.1)
Where Y in eqn. 3.1 symbolizes the two endogenous variables (Y1 & Y2).
Y = αη+ɛ ..........................................(3.2)
In Eqn. 3.1 y symbolizes the remaining eighteen endogenous variables.
Y = үη+ρ .........................................(3.3)
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34
Here,
y or Y = Endogenous observed variables
Z = Dependent variables (Service acceptance)
λ0 = Indicates constant value
λ = Co-efficient of endogenous observed variables.
η = Latent variables
α = Co-efficient of the Latent variables when influence Y variables.
𝛿 = Error in Z dependent variable
ζ = Error in Latent variable
ɛ = Measurement error in Y
γ = Co-efficient of latent variable when influence endogenous observed variables.
𝜌 = Error in endogenous observed variables
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35
Fig. 3.4: Structural equation model
Data Description and Preliminary Statics
36
CHAPTER FOUR
DATA DESCRIPTION AND PRELIMINARY STATISTICS
4.1 Introduction
This chapter shows the methodology used for collection of data for service acceptance(SA) of
ride sharing service. Along with data some preliminary statics of collected data is also shown
here.
4.2 Survey Context
The data was collected through online questionnaire of different users of transport system in
Dhaka city. Total 33 questions were asked. The questions contain both personal info. and
research related questions.
The targeted people was the users of both private car and passengers travelling on AC Bus
service. All over 350 data was collected. Among them 300 data were found to be analysing and
rest 50 data were found discretized as few missing data were present there.
4.3 Sample Characteristics
Gender difference, Age difference, Occupational status, Monthly income, mostly visited place,
living place, Daily travel distance of participants are given below in Fig. 4.1 to Fig. 4.8 and
Table 4.1.
Data Description and Preliminary Statics
37
Fig. 4.1: Gender difference of respondents
Fig. 4.2: Age difference of respondents
0
50
100
150
200
250
18-20 21-25 26-30 31-35 36-40 40+
Age(years)
No. of respondents
Data Description and Preliminary Statics
38
Fig. 4.3: Occupational status of respondents
Table 4.1: Income distribution of respondents
Monthly income
Percentage %
0-10,000
70%
10,000-20,000
10%
20,000-30,000
7.667%
30,000-40,000
5.333%
40,000+
7%
0
50
100
150
200
250
Student Emloyee Marchant Housewife Others
No. of respondents
Occupation
Data Description and Preliminary Statics
39
Fig. 4.4: Mostly visited place
Fig. 4.5: Living place of respondents
0
10
20
30
40
50
60
70
80
90
No. of respondents
Living place
0
20
40
60
80
100
120
140
160
180
200
No. of respondents
Visited place
Data Description and Preliminary Statics
40
Fig. 4.6: Daily travel distance of respondents
There are several reasons why respondents prefer Ride Sharing service which are given
below.
Fig. 4.7: Trip purposes
0
50
100
150
200
250
No. of respondents
Purposes
Data Description and Preliminary Statics
41
Fig. 4.8: Reasons of ride sharing
0
20
40
60
80
100
120
140
160
Money saving Time saving Convenience Comfortability Easy to get
No. of respondents
Reasons
Result and Discussion
42
CHAPTER FIVE
RESULTS AND DISCUSSION
5.1 Introduction
This chapter presents structural model along with Confirmation Factor Analysis. The model
presents the fit indices of ride sharing service acceptance. Also the structural model presents
the strong understanding for the policy maker to understand the key attributes of sharing
attitude considering perceived risk.
5.2 Factor Analysis Results
5.2.1 Exploratory factor analysis
Explanatory Factor Analysis was used for analysis & interpretation. Factor analysis is done for
data reduction. It takes large data set of variables and look for a way to reduce or summarize
using small factor. Kaiser-Meyer-Olkin test is done in research to evaluate the degree of un-
dimensionality of the scales in the data gathered. Basically, Kaiser-Meyer-Olkin and Bartlett's
test was done in order to validate the data sufficiency for factor analysis purpose.
Exploratory Factor Analysis was carried out by main axis factoring & varimax rotation for data
purification. The varimax rotation approach generate the matrix containing the coefficients that
describe the correlation of factors and variables. In Table 5.1 the higher value of KMO and
Bartlett shows the suitability of data for factor analysis.
Result and Discussion
43
Table 5.1: KMO and Bartlett’s test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity Approx.
Chi-Square
df
Sig.
0.706
1904.385
406
0.000
Kaiser-Meyer-Olkin Measure of Sampling Adequacy value 0.706 shows that, the sample size
is adequate with significant at 0.000 and chi-square statics of 1904.385 with degree of freedom
406. The higher value of KMO and Bartlett’s defines suitability of data for Factor analysis
(Karim et al. 2020). A further reliability test is done by calculating Cronbach’s alpha test.
Table 5.2: Cronbach’s alpha test
Cronbach’s alpha
Cronbach alpha based on
standardized item
No. of item
0.758
0.763
19
According to Rahman et al. (2016) the Cronbach’s alpha value greater than 0.6 defines
consistency of data. From our result in Table 5.2 our data is consistent for factor analysis.
5.2.2 Confirmation factor analysis
To test the hypothesis, the measurement model was examined first in order for significant and
acceptable factor loading. The hypothesis model in Fig. 3.7 was measured using SPSS Amos
26 software. CFA was done to test the structure of factors consisting 20 observed variables. In
this CFA, 20 observed variables are considered under six latent variables.
Result and Discussion
44
Table 5.3: Model fit result of CFA model
CFI
NFI
TLI
RMSEA
AIC
X2
df
X2/df
0.833
0.741
0.768
0.062
441.901
297.901
137
2.174
Table 5.3 shows a fitness of model. According to Marsh et. Al. (2004) CFI value closer to 1.0
is indicates a good fit. And RMSEA value less than 0.08 is considered as very good fit (Rahman
et al. 2016). The x2/df value below 3.00 is acceptable.
To assess the measurement model validity test both convergent and discriminant validity is
done. For getting good reliability Hair et al. (2006) suggested that, the average variance
extracted value should be 0.5 or greater than 0.5 and according to Byrne’s (2006) acceptable
limit of reliability value should be 0.6 or greater than 0.6.
Table 5.4: Validity and reliability test result
CR
AVE
UE
WL
AP
ST
AT
SM
UE
0.675
0.343
0.585
0.450
WL
0.398
0.251
0.627
0.501
0.679
AP
0.563
0.261
0.554
0.690
0.511
0.425
ST
0.620
0.316
0.214
0.203
0.437
0.562
0.023
AT
0.302
0.185
0.373
0.373
0.766
0.495
0.430
0.216
SM
0.697
0.447
0.668
Notes:
AVE= Average variance extracted
CR= Composite reliability
AVE= Σ𝜆𝑖2/ [Σ𝜆𝑖2+Σ𝑖Var(𝜀𝑖)]
CR= (Σ𝜆𝑖) 2/ [(Σ𝜆𝑖)2+Σ𝑖Var(𝜀𝑖)]
Result and Discussion
45
5.2.2.1 Validity concerns
Table 5.5: Confirmatory factor analysis report
Latent variables
Composite reliability
Convergent validity(AVE)
UE
Not satisfied
Not satisfied
WL
Not satisfied
Not satisfied
AP
Not satisfied
Not satisfied
ST
Not satisfied
Not satisfied
AT
Not satisfied
Not satisfied
SM
Not satisfied
Not satisfied
For the purpose of getting good composite reliability the minimum accepted value was
suggested to be 0.7 as recommended by Chin (1988). Additionally, the average variance
extracted (AVE) value should be at least 0.5 or more is better as recommended by Hair et al.
(2006). From the Table 5.5 we can see that, all the value of CR and AVE don’t satisfy the
criteria. So, we can say that, all the data of our six latent variables aren’t reliable and valid.
Result and Discussion
46
Fig. 5.1: Reliability & validity relations
From Fig. 5.1 we can say that, our data doesn’t satisfy the criteria. All the data is scattered from
its centre.
5.3 Hypothesis Testing Results
Our structural model in Fig. 5.2 introduces two latent variables obtained by splitting all the
performance variables into two parts: User’s Judgement(η1) and Safety & Security(η2). User’s
Judgement is calibrated by the ten endogenous variables and Safety & Security is calibrated by
eight endogenous latent variables. At first, it is assumed there is direct relationship between
“user’s Judgement” and “Safety & Security”. Path co-efficient value of influence of User’s
Judgement on Safety & Security is 0.63 and again, the path co-efficient value of influence of
Safety & Security on User’s Judgement is found 0.63. However, this these two variables are
correlated with high statistically significant value 0.63 with p-value less than 0.005 in Fig. 5.2.
Under User’s Judgement latent variable Driver’s attitude(y7) variable is more significant
variables with path co-efficient 0.54 with p-value less than 0.005. And in the under of Safety
& Security latent variable Account information(y12) of user’s during paying fare is more
significant variable. From Fig. 5.2 Personal info. (y11) has negative significant value with
Result and Discussion
47
Women’s safety(y15). That means the variables will influence each other negatively.
Information that are being leaked via RS application will not hamper women’s safety.
Fig. 5.2: Path co-efficient result of structural equation model
Result and Discussion
48
The result of the model in Table 5.5 shows that all the path co-efficient value is positive. That
means all the variable of User’s judgement influence positively and all the variables of Safety
& Security influence positively. From our Fig. 5.2 we can see that, User’s Judgement latent
variables influence Permission for RS(Y1) endogenous observed variables positively. UJ also
influence Safety & Security latent variables positively. At the same time Safety & security
positively influence Allowing personal car(Y2) for RS but it influence more positively to
Permission someone for RS.
Table 5.6: Estimated parameters value of diff. SA variables
Variable
Category
Variable name
Variable
Annotation
Path Co-efficient
P-value
Endogenous
observed
variables
Comfortability
y1
0.31
*
Time
Affordability
y2
0.45
**
Cost
Affordability
y3
0.41
**
Familiarity with
application
y4
0.23
**
Convenience
y5
0.49
***
Availability
y6
0.24
**
Driver’s
Attitude
y7
0.54
***
Result and Discussion
49
Driver’s skill
y8
0.46
**
Traffic
Congestion
y9
0.52
***
Environmental
Impact
y10
0.48
***
Personal Info.
y11
0.71
***
Account info.
y12
0.75
***
Waiting charge
y13
0.42
**
Passenger’s
safety
y14
0.38
**
Women’s safety
y15
0.37
**
Accident
y16
0.10
*
Deception
y17
0.15
**
Conflict risk
y18
0.05
*
Permission for
Ride Sharing
Y19
0.95
***
Allowing
personal car for
RS
Y20
0.12
*
User’s
Judgement
η1
Result and Discussion
50
Latent
Variables
Safety &
Security
η2
0.63
***
Note: *p<0.05; **p<0.01; ***p<0.001
Permission for RS(Y1) service influence Allowing personal car(Y2) for RS with path co-
efficient 0.19 and p-value less than 0.02. Among Permission someone for RS and Allowing
personal car for RS Permission someone for RS influence Service Acceptance dependant
variable more positive with co-efficient 0.95. That means, permission someone for RS has
more influence on SA than Allowing personal car with co-efficient 0.12.
5.4 Empirical Model Results
Structural Equation Modeling is used to analyse Service Acceptance of Ride Sharing service
in Bangladesh. The target of this analysis is to reveal parameters which represents the main
aspects of SA. A series of models are developed to thoroughly identify the relation between
independent variables, dependent variables & Latent variables. Initially a model is proposed
randomly and after that the model is re-examined several times to modify and to form a better
acceptable model. For this trial & error method is done.
The model reveals the relationship of variables with each-other considering different
parameters. Hooper et al. (2008) introduce a guideline for determining model fit indices.
Absolute fit indices determine how well a certain model fits the sample data. The value of CFI,
NFI, TLI, RMSEA, AIC and x2/df is given below table 5.6. According to Marsh et. Al. (2004)
CFI value closer to 1.0 is indicates a good fit. And RMSEA value less than 0.05 is considered
as very good fit (Steiger 1990). And the x2/df value below 3.00 is acceptable. And PNFI value
less than 0.500 is acceptable.
Result and Discussion
51
Table 5.7: Goodness of fit measures of models
Fit Indices
Value
Incremental Fit
CFI
0.869
NFI
0.841
TLI
0.811
PNFI
0.478
Absolute Fit Indices
RMSEA
0.063
X2/df
X2
481.941
df
175
Result and Discussion
52
X2/df
2.75
Ride Sharing service not only impact the transport system of our country but also impact user’s
psychological condition. Sometimes users have to share his/her rides with someone who is
below/above than his/her status. At this situation user’s comfortability works a lot. From our
user’s response we have found the user’s comfort during sharing ride which is given below in
Fig. 5.3.
Fig. 5.3: Comfortability of user’s during sharing his/her rides
Time management is a concern issue for our country. Traffic jam killing our valuable time.
Passengers can’t reach to destination in due time. Another problem is that our bus has a
particular route they can’t divert to other route. But, ride sharing transports can choose any
route they want to. Time affordability of ride sharing service is given below in Fig. 5.4.
Result and Discussion
53
Fig. 5.4: Time affordability during peak hour
Ride sharing service main purpose is to travel at any place at low price. But the fare of public
transport is low than ride sharing service fare. How this slightly fare of ride sharing service is
affordable is given in Fig. 5.5.
Fig. 5.5: Cost affordability while sharing the rides with others than travelling alone
Result and Discussion
54
Application operations is the main concern of this ride sharing service. There are few ride
sharing applications. How people are familiar with these apps are given below in Fig. 5.6.
Fig. 5.6: Familiarity with ride sharing application
During peak hour there is always a vehicle scarcity. Because both office hour & school hours
are coinciding with each-other. Availability of ride sharing vehicles are shown in chart below
in Fig. 5.7.
Fig. 5.7: Availability of ride sharing vehicles during peak hour
Result and Discussion
55
The roads of Dhaka city and all other cities are very congested. Bus and other vehicles can’t
pass freely. In this situation drivers with no basic knowledge of driving drive bus at their will
which occur frequent accident. But Ride Sharing service vehicles are more likely to be personal
cars with skilled driver’s. Overall driver’s skills of driver are given below in Fig. 5.8.
Fig. 5.8: Driver’s skill both in free flow & congested condition
Traffic congestion of ride sharing services during peak period are given below in Fig. 5.9.
Fig. 5.9: Traffic congestion during peak hour
Result and Discussion
56
Most of the vehicles in our country use fuel which is very harmful for our environment. Ride
sharing service use Environmental friendly fuel in Fig. 5.10 which is very effective for
environment.
Fig. 5.10: Environmental impact due to use of fuel
In ride sharing service fare is paid by any method (cash, bKash, credit card etc.). By paying the
fare by any online payment method gives the account info. of users. How respondents support
this are given below in Fig. 5.11.
Fig. 5.11: Support “Ride Sharing” services as it takes credit card/bKash/Rocket account info.
Result and Discussion
57
Most of the ride sharing vehicles are owned by any person who use the vehicle for his/her
personal need. There are few owners who are not willing to allow their personal car for ride
sharing. Fig. 5.12 shows that very less owners are willing to allow their car for ride sharing.
Fig. 5.12: Allowing personal car for “Ride Sharing” service while it remains idle.
Safety of ride sharing service is given below in Fig. 5.13.
Fig. 5.13: Overall safety of “ride Sharing” service
Result and Discussion
58
Women are working parallel with men. They aren’t lagging behind any more. But working late
night and return safely at home has become a concern issue now a day. From Fig. 5.14 we can
say that, ride sharing service also provide safety for women travelling at night.
Fig. 5.14: Women safety during sharing her rides at night
Safety is a very concern thing. In public there are frequent accident of passengers and also the
vehicles with each-other. Fig. 5.15 shows that, ride sharing vehicles have less accident trend.
Fig. 5.15: Possibilities of accident while using “Ride Sharing” service
Result and Discussion
59
In public transport there are always a chance for the new or old passengers to be deceived by
the contractor due to fare rate. Contractor demand extra fair and sometimes this situation turns
into hazardous situation. In Ride Sharing service there is no possibilities to being deceived as
the fare system is done by mobile applications. Drivers can’t demand extra fair as the fair is
shown or displayed before starting the ride. In Ride Sharing service if any passengers get
deceived he/she can report on that. So, from Fig. 5.16 we can say that, there is less possibilities
to being deceived.
Fig. 5.16: Possibilities of being deceived due to fare payment.
Ride sharing main purpose is to share someone’s ride for reducing fare pressure by paying the
fare equally. Sometimes there are possibilities of conflict among the passengers. Sometimes,
passengers are unwilling to pay the exact fare, sometimes passengers feel that they have shared
the ride after a certain distance and according to that they should pay less. This kind of
mentalities cause conflict among the passengers. Conflict between the passengers and drivers
can also be occurred. Sometimes drivers don’t come to the exact pick-up point, passengers
have to walk certain distance which cause conflict between passengers and drivers. One the
Result and Discussion
60
other hand route changing drop-out at different point also cause conflict. Sometimes fare is
increased due to unwanted traffic jam which also cause conflict among the passengers and
drivers. Conflict of ride sharing service is given below in Fig. 5.17.
Fig. 5.17: Possibilities of conflict while paying the fare among the user’s.
5.5 Discussion
This paper verifies a structural model to identify the Ride Sharing SA considering passenger’s
attitude and perceived risk.KMO and Bartlett's test was done in order to validate the data
sufficiency for factor analysis purpose. The result of KMO and Bartlett’s shows the data
suitability for factor analysis. We have done both EFA and CFA which gives convergent
validity and divergent validity of sample data. A reliability test of CFA also done for the sample
data. Cronbach’s alpha test tell us that data is consistent for factor analysis.
The result of model shows the overall service acceptance of this Ride Sharing service with
CFI>0.80 and RMSEA<0.08. All the variables have positive influence on SA of Ride Sharing
service. Personal info. has negative influence with women’s safety. From our perception we
Result and Discussion
61
assumed the information RS service is taking may have safety concern of women travelling
specially at night. From our co-efficient value our perception proved as wrong. Info. provided
by RS service has inverse influence on women’s safety. User’s Judgement has positive
influence on permission someone for Ride Sharing. If someone’s satisfaction level is fulfilled,
he/she will give permission someone for sharing his/her ride. Permission someone for RS has
positive influence on SA of RS service.
The experience of passengers in these ride sharing services is instrumental in determining
whether they continue to use these services and how frequently. And for this Comfortability
during sharing ride, Time Affordability, Cost Affordability, Familiarity with Ride Sharing
applications, Availability during peak hour, Drivers skill, Traffic Congestion, Environmental
Impact, Safety for all the passengers, Women safety specially during night travelling,
Deception and conflict among the passengers & with the drivers play a major role. Analysing
our respondents both who have used or haven’t used ride sharing service we found that, ride
sharing attitude are significantly associated with those parameters. From that analysis we also
found that, passengers will feel comfort to share his/her ride as ride sharing as this service
appear to them as a Time Affordable & Cost Affordable service. Due to lack of basic
knowledge of mobile operation ride sharing application seems un-familiar to them. Our result
also indicates that, there is lack of ride sharing vehicles during peak hour but still passengers
prefer this service as faster movement with skilled drivers.
Transport has great impact on environment. Using of un-environmental friendly fuel cause
great damage to environment. Our Ride Sharing service transports use environmental friendly
fuel which is preferable by all. As this service based on both manual and mobile banking
payment system so passengers sometimes doesn’t support this system.
Result and Discussion
62
Safety is a great concern for passengers in our country. Our public transport has overtaking
tendency to get more passengers than others which cause sometimes major fatalities to
passengers. Specially, women travelling public transport at night is a great concern. Several
unusual occurrence has been occurred in past days. According to our respondents Ride Sharing
service seems more secure transport system than public transport. They also think this service
even safer for women at night.
These result shows that, there are still some factor in which passengers can’t bring full trust on
it. But overall considering this service with public transport system both users and non-users
prefer this service.
More heterogeneity of this study can be done by analysing the model by the variation of
Gender, Age and Monthly Income.
Conclusions
64
CHAPTER SIX
CONCLUSIONS AND RECOMENDATIONS
6.1 Introduction
This study is an attempt to model the causal relationship between overall SA of the sharing
passenger vessel operating in different routes of Bangladesh and SA variables describing the
attitude and perceived risk of ride sharing service. The service users stated preferences are used
to find out the significant variables those affect the SA most. For this purpose, SEM is used.
SEM is a multivariate analysis technique which can expose the inherent structure within a set
of data and permits to introduce latent constructs.
6.2 Conclusions
The aim of this research was to justify the user’s attitude to share their rides with each other
travelling at the same destination considering perceived risk and others attributes. Our study
reveals that user’s have high tendency to share their rides with each other. Best structure for
understanding Service acceptance of ride sharing service is provided in this research using
SEM. It reflects passenger demand on overall Ride sharing service through their perception
about sharing attitude and perceived risk variables. Individual passenger specific observations
are used for modeling which reflect their needs and expectations. To identify the structure that
suits Ride Sharing service acceptance data, different SE models are developed and one model
is selected by trial and error. Models goodness of fit is justified by different parameters(CFI>
0.80 and RMSEA< 0.08) and consistency with real life expected scenario.
Conclusions
65
Following conclusions are obtained from the best model:
KMO and Bartlett's test result is greater than 0.5 which means the suitability of data for factor
analysis. From cronbach’s alpha test data is suitable for factor analysis. For Confirmation
Factor Analysis, CFI= 0.833 and RMSEA=0.062 which denotes the goodness fit of model. RS
service provide enough safety on personal information so, there need not to be worried about
the passenger’s safety specially women’s safety during night travel. To user’s ride sharing
service is more comfortable than any other public transport service. Despite of less availability
users prefer this service as Time affordable service and cost affordable service than other
transport like CNG and rickshaw. There is less possibilities of accident and it is safer for
women than public transport. And there are no chances of being deceived by drivers and
passengers due to fare.
Considering both sharing attitude and perceived risk ride sharing service is an emerging service
in our country and it also satisfies all the demands of user’s. Proper management can lead our
transport system to a new dimension.
6.3 Recommendations for Future Research
The heterogeneity among users might affect ride sharing SA differently. SA variables are not
equally judged by the users; meaning that an improvement made to any of these variables
would not have the same acceptance level from the individual users. This effect can be
examined by revaluating the model, by dividing the entire sample based on gender, age,
monthly income, route etc. The author expects to develop further refined models for Ride
sharing SA, that would be a far of this debate. After that, driverless vehicles controlled centrally
should be implemented for better experience.
Conclusions
66
References
67
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